Angela Harmantas
Proactive has a commercial relationship with Bit Digital Inc. This article was produced independently under Proactive's Editorial Standards Policy.
Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more
Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists.
Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth.
We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors.
The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies.
Proactive has always been a forward looking and enthusiastic technology adopter.
Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows.
Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation.
Published: 14:14 12 Nov 2026 GMT
Bit Digital Inc (NASDAQ:BTBT) returned to positive GAAP earnings in the third quarter of 2026, reporting net income attributable to shareholders of $28.5 million, or $0.08 per diluted share, as growth in colocation revenue and a stronger cash position supported the result.
That compared with a net loss of $107.2 million, or $0.31 per share, in the second quarter. The company said realized and unrealized gains on digital assets and digital intangible assets, impairment on digital intangible assets and non-operating items including induced conversion expense accounted for about $16.3 million of the third-quarter gain and $83.5 million of the second-quarter loss.
Colocation revenue rose 232% year over year to $5.6 million, up 19% from the second quarter, at a gross margin of about 57%. For the nine months, colocation revenue climbed almost 200%. Bit Digital attributed the growth to its MTL-3 site becoming fully operational in November 2025 and the first revenue from the initial 20 MW of contracted capacity at the NC-1 facility.
Total revenue for the quarter was $27.1 million, down 11% from $30.5 million a year earlier, while revenue for the nine months rose 7% to $87.1 million. Gross profit was $15.2 million, a gross margin of 56.1%. Cloud Services contributed $18.1 million, up slightly year over year, at a gross margin of about 56%.
Native ETH staking revenue grew 14% sequentially to $1 million, helped by a higher Ethereum price. Native staking generated 474 ETH during the quarter, bringing rewards earned through September to roughly 1,863 ETH.
Nine-month staking revenue was up 11% year over year. Third-quarter staking revenue was below the $2.9 million a year earlier, which the company linked to moving ETH into liquid staking to collateralize the WhiteFiber financing in the second quarter.
Bit Digital held about 163,725.9 ETH at quarter end, with a market value of $439.4 million based on an ETH price of about $2,684.
The company also held nearly 60% of the total WhiteFiber shares with an implied value of about $487 million.
Bitcoin mining continued to wind down. The segment generated $2.0 million in revenue on 28.4 bitcoin mined, compared with $7.4 million on 64.9 bitcoin a year earlier, at a gross margin of about 27%. Bit Digital does not expect to allocate meaningful growth or maintenance capital to mining going forward.
CEO Sam Tabar described the quarter as reflecting the company’s continued shift toward Ethereum and AI infrastructure.
Tabar also said share repurchases deserve serious consideration given the persistent discount to net asset value. He noted that shareholder approval is required under the company’s Articles of Association, and that any request would need a funding plan that improves value per share while maintaining sufficient liquidity.
"We remain constructive on the assets we own, and our responsibility is to determine how best to translate their value into returns for Bit Digital shareholders,” the CEO said.
Cash and cash equivalents reached about $143.5 million at September 30, up from $83.6 million at June 30.
Net cash provided by operating activities was $163.2 million for the nine months, compared with a use of $204.9 million a year earlier.
Remaining performance obligations stood at about $729 million at quarter end. Of that, around $13.5 million is expected to be recognized during the rest of 2026, $235.1 million in 2027 and $206.9 million in 2028, with the remainder thereafter. Contract liabilities rose to $154.1 million from $7.7 million at December 31, 2025.
